Last week, we explained Airbnb’s shift to a 15.5% host-only fee. But we need to clarify something important: our original advice around PMS markups wasn’t accurate.
The short version? Airbnb’s fee is 15.5%, but your markup in a PMS needs to be ~18.34% to keep your payout the same. In this article, we’ll walk through why that is, show the math, and help you apply the correction to your nightly rates, cleaning fees, and extras.
What Changed with Airbnb Fees
- Split-fee model (ending): Hosts paid ~3%, guests paid 14–16%.
- Host-only fee (new standard): Airbnb now takes 15.5% (16% in Brazil) directly from the host payout. Guests no longer see a service fee line item.
Timeline recap:
- Aug 25, 2025: New PMS-connected hosts required to use host-only.
- Oct 27, 2025: Most PMS-connected hosts worldwide move to 15.5%.
- Dec 1, 2025: Most non-PMS hosts already on single-fee standardize to 15.5%.
The Markup vs. Fee Confusion
Here’s where many property managers (and yes, even we at first!) stumbled:
- Airbnb host fee = 15.5%. This is what Airbnb keeps.
- PMS markup = what you must set so that after Airbnb’s cut, your payout is preserved.
Because Airbnb takes its cut from the gross price (what the guest sees), your markup has to be higher than 15.5%.
Example:
- Target payout = $100
- Gross Airbnb price must be $118.34
- Airbnb takes 15.5% = $18.34
- Host nets $100
👉 That’s why the correct markup is ~18.34%.
How to Apply It in Your PMS
- If you were on split-fee (3%), increase PMS markup to ~18.34%.
- If you were already on host-only <15.5%, increase markup slightly to ~18.34%.
- If you were already at 15.5% or higher (e.g. 16%), you may not need to change; your payout may even increase slightly.
- In Brazil, Airbnb’s host fee remains 16%.
💡 Do not change your base rates in tools like PriceLabs. Update your PMS channel markup for Airbnb instead.
Cleaning Fees and Extras
Don’t forget: Airbnb’s 15.5% fee applies to the full subtotal — nightly rate, cleaning fees, and extra guest fees.
Formula: New Fee = Old Fee × 1.1834
Example:
- Old cleaning fee = $100
- New cleaning fee = $118.34
- After Airbnb’s 15.5% cut, host nets $100.
If you’d like to see more worked-out examples of how to calculate your new Airbnb pricing in light of the Airbnb host fee change, check out this detailed article from PriceLabs.
Common Misunderstandings
Many managers confuse Airbnb’s 15.5% host-only fee with the markup they need to apply in their PMS. The fee is what Airbnb keeps from the gross booking price. The markup is what you set so that, after Airbnb takes its cut, you still net the same payout. Mixing these two concepts is common — even Airbnb’s own messaging can blur the distinction. Remember: fee = what Airbnb takes; markup = what you add.
Why Airbnb Made the Change
- Conversion psychology: Guests dislike service fee line items. Showing one all-in price improves conversion.
- Brand perception: Airbnb looks “cleaner” and less fee-heavy.
- OTA parity: Airbnb now looks structurally similar to Booking.com (~15%), though Vrbo remains cheaper for hosts (~8%).
What the Airbnb Host Fee Change Means for Property Managers
- Margins: Your costs are going up, but you can protect payouts by adjusting markups.
- Channel mix: Vrbo may look more attractive to hosts (lower cost), but Airbnb’s no-fee checkout may drive stronger guest demand.
- Direct bookings: At ~2–3% processing cost, they’re more profitable than ever.
How the Airbnb Host Fee Change Stacks Up Against Vrbo and Booking.com
With the Airbnb Host Fee Change, costs across OTAs are converging. On Booking.com, many managers pay 15% base plus 1–3% payment fees, with “Preferred” programs pushing effective commission closer to 20%. Vrbo is cheaper for hosts at ~8%, but adds a guest-facing fee of 6–15%, which can hurt conversion. Airbnb now looks more expensive for hosts than Vrbo, but more transparent to guests.
The upshot: property managers must weigh not just cost, but also guest demand and conversion performance when deciding their channel mix.
Bottom Line
The Airbnb host fee change doesn’t have to shrink your margins. But the distinction between Airbnb’s 15.5% fee and your ~18.34% PMS markup is critical.
Set your PMS markup correctly, adjust cleaning and extra fees, and you’ll keep your payouts steady while offering guests the same all-in price.
